Conventional Mortgage Loans in Utah

Conventional loans offer lower costs than other popular loan types and are a great choice for many homebuyers who meet the specific requirements. Discover what a conventional mortgage loan is, the different types, and if this loan option is right for you.

What is a conventional mortgage loan?

Conventional loans are the most common types of mortgages. These loans are not backed by a government agency and are originated and serviced by private mortgage lenders such as banks, and credit unions. They are then sold to government-sponsored enterprises like Fannie Mae or Freddie Mac.

Because conventional loan lenders are not protected by the government, credit score and debt-to-income requirements are more strict for conventional mortgage loans than for other types of loans. Most lenders will require a credit score between 620 and 660 in order for you to qualify. Additionally, if your down payment for a conventional loan is less than 20 percent, you will be required to pay private mortgage insurance (PMI) as part of your monthly payment. PMI is similar to insurance premiums required on other types of loans, and protects lenders if the buyer defaults on the loan.

Speak with a loan officer
Conventional Loan Purchase

What are the different types of conventional mortgage loans?

Conventional loans can fall under the categories of “conforming” or “non-conforming”.

Conforming conventional mortgages are loans that meet specific standards in order to be bought by a government-sponsored enterprise (GSE), like Fannie Mae or Freddie Mac. Many GSE’s have certain requirements for the types of mortgages they’ll buy to ensure that the mortgage market is made up of creditworthy mortgages.

Non-conforming conventional mortgages are loans that lenders are unable to sell to Fannie Mae or Freddie Mac. When this is the case, lenders can either keep this loan in their portfolio or sell it to a private investor. Many non-conforming loans occur because the loan amount is above the FHFA’s limit for conforming loans. In most areas in the U.S. in 2021, you can’t get a conforming loan for an amount larger than $548,250, and will have to apply for a type of non-conforming loan called a jumbo loan.

What do I qualify for?

What are the rates, requirements, and down payments for a conventional mortgage loan?

Rates

Conventional mortgage loans can have fixed or adjustable rates. If you have a fixed rate, your interest rate and payment will remain the same for the entire life of the loan. If you have an adjustable rate, your rate may change based on fluctuations in the market.

Oftentimes conventional mortgages have lower rates than other popular loan types. To get the best rate possible, you may need to take time to improve your credit score, lower your debt-to-income (DTI) or save more money for a down payment before applying for a mortgage.

Requirements

In most cases, conventional mortgage loans may require a credit score of at least 620, as discussed earlier, a loan size of less than $548,250 (with exceptions for Alaska, Hawaii and high-cost areas), and a DTI of 50% or less. DTI requirements for nonconforming loans may also be lower than the requirements for conforming loans, depending on the individual lender.

You can calculate your DTI by adding up the minimum monthly payments on all your debts (like student loans, auto loans and credit cards) and dividing it by your gross monthly income.

Down Payments

Additionally, first-time home buyers can get a conventional mortgage with a down payment as low as 3%; however, the down payment requirement can vary based on your personal situation and the type of loan or property you’re getting.

If you’re not a first-time home buyer or making not more than 80% of the median income in your area, the down payment requirement is 5%. If the home you’re buying is not a single-family home (i.e., it has more than one unit), you may need to put down 15%. If you’re buying a second home, you’ll need to put at least 10% down. If you’re getting an adjustable rate mortgage, the down payment requirement is 5%. If you’re getting a jumbo loan, the down payment requirement ranges from 20% to 40%.

A mortgage calculator can help you determine how your down payment amount will affect your future monthly payments.

See today’s rates

Is a conventional mortgage loan right for me?

Conventional mortgages are the most common loan types that buyers take advantage of due to historically lower overall costs. If you meet credit requirements and have at least 3% cash for a down payment, you may also be able to take advantage of this loan option. Our helpful team of loan officers at Integrity First Lending can help you decide if a conventional loan is the best fit for you with an in person phone call and consultation.

Speak with a loan officer

What Our Clients Say About Us

  • “There is a lot of hype about what a great lending company such-and-such is, but I can tell you from my recent personal experience that Integrity First Lending refinanced my home within in 10 days with no hassle. And I mean NO HASSLE. The individuals working for this organization are both professional and, if I may add personally, the nicest people I have ever worked with. Words cannot express how happy my wife and are that we found Integrity First Lending and will unhesitatingly recommend them to anyone looking for an initial or refinanced home loan.”
    Joe L.
  • “What a fantastic team to work with. The commitment and communication with clients are the best. You will be in good hands working with Integrity First Lending. Highly recommended!”
    Mike M.
  • “This is our second time working with Integrity First. Both times we shopped around, checking for the best rates. Integrity had the lowest fees, lower even than the mortgage company who already held our loan. We received excellent customer care each time.”
    Mica T.
  • “Very easy company to work with! Painless refinance process and fast closing!”
    Cody W.
  • “Integrity First Lending is professional, helpful, and knowledgeable. They communicated clearly and regularly, so that I always knew what was happening. They responded promptly to my questions. The process went very smoothly because of their expertise. I highly recommend this team!”
    Becky B.
  • “The Integrity First team epitomizes a "customer-first" attitude. The team's responsiveness and timely communication make them stand out above the rest.”
    Bruce C.
  • “Integrity First has a great team on individuals who made our refinance quick and easy. We were able to do everything ok online through their portal right up until we closed with the title company.”
    Alison D.
Integrity Lending Logo
Equal Housing Lender
Equal Housing Lender. Integrity First Lending.
NMLS # 1006977
Get Social With Us

© 2018-2021 IntegrityLending. All Rights Reserved. Website Built by SEO Werkz

chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram